PREVAILING WAGE BILL WILL PAY OFF FOR STATE

The new prevailing wage legislation should pay off for Missouri schools, governments and contractors. The measure will streamline wage determinations and help avoid costly construction delays.

The bill was approved by the General Assembly and awaits Gov. Mel Carnahan's signature. If signed, it will take effect in August. The measure has garnered support from groups ranging from the Missouri Chamber of Commerce and the state Municipal League to contractors and labor unions groups that are often on opposite sides of issues. It's good to see business and labor working together.

The measure eliminates the current practice of requiring a separate wage determination for construction trades on each project. It's this bureaucratic process that can delay projects for months. And delays are unproductive for both contractors and the governmental entities.

Under the proposal, the Department of Labor and Industrial Relations would determine wage rates for each construction craft on a county by county basis once each year. Final determinations would be made by July 1. It is similar to a law already in effect for heavy and highway construction projects. This bill extends these wage rules to general construction.

These wage disputes have slowed projects throughout the state. Southeast Missouri State University currently has nine campus projects under dispute, held up for a minimum of 60 days. In these nine cases, the university requested wage determinations in February. The rulings came in March, but were appealed in April. A hearing is now set for mid-June. These slowdowns hurt both the university and the idled construction workers.

The city of Cape Girardeau has similar stories of wage dispute delays. Part of the frustration, says City Engineer Kensey Russell, is that objections can be raised by a craft or union that does not have work in a particular job. That's ridiculous. A union can still file an objection under this bill, but not on a project by project basis. Now, governments have to request a wage determination on every job, even if there isn't a dispute. This proposal will eliminate a literal mountain of paperwork.

Another frustrating aspect for governmental entities can be the increase in supply prices while projects are deadlocked by these disputes. This streamlined prevailing wage process should not only speed up work, but help to hold costs within budget. It should really help school districts, which typically schedule maintenance and light construction projects during the summer months. Delays often push these projects into the regular school year, inconveniencing students and staff.

We hope the governor signs this productive legislation. It should improve working relationships between governmental entities and the building trades, and remove costly time delays from construction projects.